S&P UP 30% FROM ITS BOTTOM
16 April 2009 by Cullen Roche
6 Comments
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Comments
UFB What else can you say at this point? I guess we're not immune from the kind of psychology that produced the violent rallies in '29-'32, are we?
The government has been guiding this market higher for 6 straight weeks. What baffles me is that there are still a lot of short in this market driving prices higher. Who in their right mind is getting short in front of GE and Citi tomorrow? We're gonna see this sort of action for at least the next week. But wait until the bank earnings end and the PPIP is out of the way. There will be no ammo left and this bloated market could fall off a cliff….
Also GOOG earnings…but we are knocking on the 875-880 SP level which beckons that we go higher if we breach it. Faber also said the same thing earlier on that this may be a resistance level before we head for a correction, a much needed one. Anyhow, I think bank stocks are done going up already because technically all these positive earnings expectations for those that havent reported yet should already be priced in. Only thing noteworthy is the stress test results which I doubt will be negative. I also doubt GE and Citi will report anything less than Huge beats, GOOG is a wildcard that can push the markets higher if they say anything positive. I am looking to go into some SDS when SP500 reaches 875-880, it may happen tomorrow.
Also, it seems that the last hour of everyday is like a jungle. I could have sworn that the last 20 minutes today has been the most volatile I have ever seen the markets, Dow jumping 10-15 points at a time. Something is up with it, this is really like gambling except that most people are winning (most people are long in reality). When its too easy to make money, I get very suspicious. Much like Madoff, if its too good to be true, its probably not.
You just have to trade with the government until they get out of the way. I don't mind if the market is manipulated so long as I know which way it's going to be manipulated….
Like you said about Timmy pulling rabbits out of the hat…this stream of charade courtesy of the government may continue throughout the rest of this year….in which case, we will keep going higher??
btw, GOOG earnings beat but their top line sucked…1st quarterly decline in revs in company history…that doesnt sound too good, still making a ton of money though.
I am fairly certain the stress tests are the last of the rabbits, but we'll have to play it by ear.